Global investment firm KKR & Co., through its subsidiary Hector Asia Holdings II Pte. Ltd., in collaboration with KIA EBT II Scheme 1, has moved to acquire a controlling stake in HealthCare Global Enterprises Limited (HCG).
The proposed transaction, currently awaiting clearance from the Competition Commission of India (CCI), is set to trigger a major shift in the Indian healthcare sector.
As per the combination notice submitted to the CCI, Hector and EBT plan to acquire up to 54 percent of HCG’s diluted voting share capital from Aceso Company Pte. Ltd.
The acquisition will be executed in two tranches and will also involve a mandatory open offer to public shareholders under India’s takeover regulations. Depending on the extent of shareholder participation, the total stake held by the acquirers could range from 54 percent to a controlling 77 percent of HCG’s expanded voting share capital.
Hector Asia is a Singapore-incorporated entity wholly owned by investment funds managed by KKR, a global powerhouse in private equity and alternative asset management. KIA EBT II Scheme 1, on the other hand, is an employee benefit scheme under KIA EBT Trust II, designed for KKR employees.
HealthCare Global Enterprises, a publicly listed company, is a prominent player in India’s healthcare space, with operations spanning multi-specialty hospitals in key cities such as Bhavnagar, Ahmedabad, Rajkot, and Hubli.
It is widely recognized for its expertise in oncology, providing comprehensive cancer care services, including nuclear medicine, radiation therapy, medical oncology, and surgical oncology. Additionally, HCG runs fertility centers, radiology and PET-CT facilities, and engages in life sciences research, academic studies, and precision medicine diagnostics.
The transaction is being assessed under Section 5(a) of the Competition Act, 2002, which governs combinations and acquisitions in India. While the parties assert that the proposed deal will not impact market competition adversely, CCI’s evaluation will consider horizontal overlaps in advanced healthcare services, such as liver, kidney, and bone marrow transplants, as well as telemedicine. Additionally, vertical linkages in the pharmaceutical and medical devices supply chain could also be scrutinized.
If approved, the acquisition will further consolidate KKR’s presence in India’s growing healthcare sector, enhancing its influence in the hospital and specialized care market. The development comes at a time when private equity interest in Indian healthcare is surging, driven by rising demand for specialized medical services and increasing investment in digital and precision medicine, economy watchers said.
